I've been having this issue for quite a while now, even though it's supposedly fixed.
Almost any image I put into klwp is crunched down to an unusable resolution, regardless of size. I'm not using blur or any other effects, the images are simply compressed as soon as I add them. This is pretty much making it impossible to create anything now. This affects both the preview and the actual wallpaper.
I'm using a Moto G7 Supra.